Default Retirement Age scrapped

Retirement at 65

Retirement at 65

The Government has announced its plan to get rid of forced retirement at 65. Meaning that, from April people who reach that age will be able to continue in their jobs.

The Employment Relations Minister, Ed Davey had said that it was “”great news for older people, great news for business and great news for the economy”. He said that older people still have a lot to offer in the work place, and there was no need for this outdated form of discrimination.

However, he dismissed claims that by getting rid of the Default Retirement Age  it would be harder for young people to find jobs in the already very competitive job market.

Although it will start to take to take place in April, the Government will be phasing it in slowly to allow employers to adjust to the change.

Charities such as Age UK, have welcomed the move saying that the old law was “unfair” and arguing that people over 65 still have very much to offer to the economy. But business leaders are claim that this will “reduce employers’ flexibility”.

This announcement came at the time as the release of the Pensions Bill, which is raising state pensions to 68. This has previously been announced last year in the Chancellors spending review.

Companies will now also be required to automatically enrol staff into their pensions scheme. This is expected to make employers reduce their contributions to existing members.

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